CCCC sustains massive losses in suspended Colombo Port City project
Colombo: The suspension of all ongoing work at the Colombo Port City project, following the Sri Lankan government’s official communication on March 6, is costing the contractor, China Construction Communication Company (CCCC), an estimated $380,000 per day.
Over 200 metres of the breakwater constructed thus far has been damaged due to the suspension, as the company has been unable to take measures to protect the reclaimed land due to the suspension. The reconstruction of this damaged land area will be an additional cost the company will have to incur, if and when the project re-commences.
Further, the interest on the financial loan obtained by the company for the development of the project is being paid, regardless of the ongoing suspension.
The $1.4bn, 100% privately funded project, had begun construction on September 16, 2014, following the signing of an agreement between ‘Fortune 500’ company CCCC and the Sri Lankan government, then being run by Mahinda Rajapakse’s Sri Lanka Freedom Party (SLFP).
The project employs approximately 1,000 direct personnel and a further 4,000 indirect employees, of which almost all are Sri Lankan. The sustainability of this workforce is also a concern for the company during this period.
Without prejudice to its legal rights, the company has provided an assurance that it will continue to work with the Sri Lankan government in providing further documentation and information needed to review the Colombo Port City Development Project.
